In Your Twenties? Have a Job? Chances Are You’re Feeling Pretty Good

Though the economy has been adding jobs at a steady pace, the effects of the recovery haven’t been spread evenly. According to Bankrate.com’s most recent monthly Financial Security Index, older Americans have seen less improvement in job security and savings over the past year than those in their twenties.

Leah Nash for The Wall Street Journal

A sample of 1,004 adults living in the United States were asked six questions via telephone interviews to measure how they feel about their personal finances. Forty-three percent of respondents between the ages of 18 and 29 said they feel more secure in their jobs today than they felt a year ago, as compared to only 18% of those aged 30 and older.

The Bankrate.com survey, which focuses on individuals who currently have a job, suggests a better employment situation for young people than does the Bureau of Labor Statistics survey, which has consistently shown the highest rate of joblessness among Americans aged 24 and under. “If you’re under 30 and have a job, then you feel pretty good about it,” Greg McBride, senior financial analyst at Bankrate.com, said in a phone interview. “For many young people, it’s a function of coming from a small base, as opposed to someone, 50 years old, who has had savings, but is now seeing expenses going up and other people in the same age group having trouble finding a job.”

Americans in their twenties also reported feeling better about their savings than those aged 30 and older. Only 20% of participants aged 18 to 29 said they feel less comfortable with their savings than a year ago, while 30% percent of those aged 30 to 49 and 40% of those aged 50 and older said the same thing. “Americans over 50 have a downbeat reading with respect to financial security, while those under 30 are upbeat relative to all other age groups,” Mr. McBride said.

Despite differences among age groups, the survey results reveal an overall improvement in financial health. June has been the fourth consecutive month that the Bankrate.com survey, which began in December 2010, has seen Americans indicating improved year-over-year financial security. The share of people feeling more secure in their jobs than a year ago is about twice the percentage of those who feel less secure.

The only area showing a lack of improvement: savings. Three out of four Americans don’t have enough savings to cover at least six months of expenses—a ratio that hasn’t changed much in the past three years.

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